Fed's favorite inflation gauge edges higher in June as tariffs ramp up

• The data came alongside other indicators that showed steady consumer spending, though, as pay growth rebounded.

By the numbers: The Personal Consumption Expenditures price index — the Fed's go-to measure of inflation — rose 0.3% last month, the Commerce Department said on Thursday. That is a tick faster than the 0.2% gain in May.

• Core PCE, which excludes energy and food prices, similarly increased by 0.3% in June. Both gauges rose by 0.2% in May.

From the same month one year ago, the PCE price index for June rose 2.6% — up from the 2.4% increase in the 12 months through May.

• Core PCE increased 2.8% from one year ago, compared to the 2.7% gain in May.

The big picture: Personal consumption expenditures, a measure of consumer spending, rose by 0.3% last month after unchanged spending in May.

• Personal income rose by 0.3% after falling by a similar amount the prior month. Adjusted for inflation, however, pay growth was flat.

The bottom line: Inflation is on the upswing as President Trump ramps up tariffs around the globe.